Debt Structure Questions And How To Protect Your Investment From Loan Pitfalls | Ep 67

(Watch the YouTube video of this episode here)

In today's session, Jessi and I dive into the vital topic of real estate finance, providing you with a comprehensive look at the complexities of passive real estate investing. We'll walk through critical aspects, from understanding loan-to-value ratios and preferred equity to refinancing and working with lenders. This episode is part of an eight-part series, so we are taking our time to ensure you have all the tools needed to make informed investment decisions.

// Key Moments

• 00:00 Intro
• 01:08 Eight-Part Series Breakdown
• 04:20 Understanding Leverage and Loan-to-Value
• 06:02 Preferred Equity Explained
• 12:01 Cash Flow and Debt Service Coverage Ratio
• 14:16 Exploring Financing Options
• 15:26 Bridge Loans and Their Implications
• 16:17 Key Questions to Ask About Loans
• 18:46 The Role of Underwriters in Financing
• 24:46 The Refinancing Process

//Key Lessons

1. If your loan terms sound too good to be true, check the fine print: Just because a lender says something doesn't mean the underwriter will approve it. Verify before you celebrate.
2. Floating interest rates are like roller coasters—fun until they aren't: If your loan isn't fixed, make sure you've stress-tested the worst-case scenario, or you might be in for a wild ride.
3. Underwriters are the real decision-makers: Your lender may be friendly, but the underwriter is the one holding the final approval—make sure your deal makes sense to them, not just to you.
4. Not all cash flow is created equal: Just because a property "cash flows" from day one doesn't mean it's a good investment—look at the long-term numbers, not just the honeymoon phase.
5. Refinancing is a strategy, not a certainty: If your entire investment plan relies on a refinance, you might be setting yourself up for a surprise—always have a backup plan.

// Let's build your wealth and improve housing, together.

I spent 12 years as a data scientist at HP and purchased $5M worth of real estate over 15 years using my own money. Now, I'm partnering with busy professionals to diversify their investments and generate passive income through real estate syndications and short-term flips—without dealing with tenants, toilets, or tantrums.

At Furlo Capital, we believe real estate isn't just a transaction; it's a partnership. Our value-add approach creates win-win situations where residents thrive, and investors build wealth. We're not just in this to make money—we want to make a difference.

If you're ready to diversify from stock market volatility and want reliable, steady returns, let's build your wealth and improve housing, together.

Want to dive deeper into my investing thesis and strategy?

👉 Learn more: https://furlo.comCurious about the critical questions to ask before investing?

👉 Get my 196-question due diligence vault: https://furlo.com/good-deals-only-ebook

// Disclaimer

Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors.